At potential real GDP:
a. there is zero unemployment.
b. there is no seasonal unemployment.
c. there is no frictional unemployment.
d. unemployment is at its natural rate.
e. cyclical unemployment equals approximately 5 percent.
d
You might also like to view...
When consumption of a good is nonrival and nonexcludable, the good is a
A) public good. B) private good. C) mixed good. D) service.
How does money function as a unit of account? a. Money has intrinsic worth as a commodity
b. Money is convertible into commodities that have intrinsic worth. c. The prices of all goods and services are measured in terms of money. d. Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith. e. Bank accounts make it easy for people to store their wealth.
Only a change in the price level can cause shifts in both the aggregate expenditure line and the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary